Doing debt relief in Hawaii could help you manage your debt by combining all your monthly payments into one. If you have more than $10,000 in debt and finding difficult to keep up with multiple monthly payments, you might be a good candidate for debt consolidation. Find out more information about your debt relief options in this article.
Debt Consolidation Loans In Hawaii
Hawaii is often thought of as a paradise, and millions of Americans dream of spending time there, especially during the cold winter months. However, for many residents of Hawaii, life is far from perfect. Wages are relatively low and debt is high, making it difficult to enjoy the laid-back lifestyle that makes Hawaii so appealing.
A 2018 survey revealed that Hawaiians spend 36.2% of their monthly paychecks on credit cards, student loans, and housing payments (the highest percentage in the nation). It’s no wonder then that Hawaii is the most expensive state in the country and also the least affordable place to live.
Consolidating your debts can help you save money on interest and make it easier to pay off what you owe. But should you get an unsecured or secured loan for debt consolidation?
A secured loan can offer many benefits, including a lower interest rate. This is because the loan is backed by collateral, which the lender can take if you default on the loan.
If you miss loan payments, you could lose the asset you used as collateral. Although debt consolidation has pros and cons, as long as you keep up with your payments, the cons shouldn’t be an issue.
Loans that are not secured by collateral are called unsecured loans. With an unsecured loan, you borrow money and then make monthly payments to repay the debt. The terms of an unsecured loan are typically similar to those of a standard personal loan: you pay the money back, plus interest, every month for a fixed period of time.
Hawaii USA Income & Debt Stats
Hawaii is a beautiful place that comes with a high cost of living. Here are some statistics you should know about the cost of living in Hawaii.
Housing Market In Hawaii
Home prices in Hawaii continue to rise, with a 1.5% increase year-over-year in August. However, the number of homes sold fell by 26.8%, and the number of homes for sale decreased by 13.
One of the reasons Hawaii is so expensive is its location. It’s an island chain situated far from the US mainland, which means that the cost of transporting goods and materials there is higher than usual. Additionally, its climate and natural beauty make it a desirable place to live, and this is reflected in the prices of homes and apartments.
- There are around 564,878 housing units in Hawaii.
- Over 87% of the units are occupied.
- 63% are owner-occupied.
- The average home in Hawaii costs over $1 million.
Retirement In Hawaii
In Hawaii, seniors make up a larger proportion of the population than they do nationally. Just over 37 percent of residents are 50 and older, totaling half a million people. While this is only a slight increase from the national rate, in other ways Hawaii stands out when it comes to its older population. For example, the median age in Hawaii is 39.3, which is less than a year higher than the national median age of 38.5.
The cost of living in Hawaii is significantly higher than the national average. According to the housing index, one-bedroom apartments in Hawaii average $1,381 per month, while the national average is only $825.
Student Loans In Hawaii
Hawaii students have an average student loan debt of $33,244. This is 9% lower than the national average of $36,689. Student loan debt can be a burden, but there are options available to help manage it.
Despite the state’s efforts to make higher education more affordable through need-based programs, many students in Hawaii still have to rely on federal and private student loans to cover the cost of their education. This can be a burden for many students, particularly those who are already struggling to make ends meet.
Average Federal Student Loan Burden By Age Group
| Age Group | All States Borrowers | Hawaii Borrowers |
|---|---|---|
| Younger than 25 | $14,993 | $13,761 |
| 25-34 | $33,705 | $32,108 |
| 35-49 | $42,088 | $48,024 |
| Older than 50 | $41,073 | $48,869 |
Auto Loan Debt
In recent years, the car loan and lease market has seen strong growth, both in Hawaii and across the United States. The total amount of loans outstanding, the average balance per account, and the number of accounts all did grow significantly.
The total number of auto loan accounts in the U.S. grew at a faster pace than in Hawaii, while the average balance increased at a higher rate. Despite the increase in average balance compared with the U.S., Hawaii’s delinquency rate remained lower than the national average.
Statute Of Limitations In Hawaii
The Hawaiian islands have a long history of statutes of limitations on almost every type of account, from an open-ended account to credit card debt. These laws were put in place to protect consumers from unfair practices by lenders, and have been recently strengthened to prevent the re-aging of debt on credit cards.
If you’re feeling overwhelmed by debt, it’s important to know your rights. One thing you should never do is make a payment on a debt that is time-barred. This can restart the clock on the statute of limitations, and the collector can then pursue the debt in court.
In general, creditors in Hawaii have six years to collect a debt after a missed payment. However, if a court has determined that the debt is owed – for example, through a lawsuit ruling – then the time period extends to 10 years. Creditors can also seek additional extensions beyond this point.
- Auto Loan Debt: 4 years.
- Credit Card Debt: 6 years.
- Medical Debt: 6 years.
- State Tax Debt: 15 years.
Obtaining Debt Forgiveness in Hawaii USA
Creditors lend you money with the understanding that you will repay them. However, sometimes life gets in the way and you find yourself in a difficult situation. An unexpected health issue can quickly drain your savings, for example. In these cases, it is important to communicate with your creditors and explain your situation.
Forgiveness for debts can be a difficult thing to ask for, but it is always worth considering. Your creditor may be open to listening and providing some relief, even if they are not required to do so. If they only partially forgive the debt, this can still offer some help during tough times.
No matter how much debt a creditor agrees to forgive, you may still be on the hook for taxes on the discounted amount. Keep this in mind during negotiations with creditors.
Hawaii Major Cities
Have you ever had experience with debt relief in Hawaii? Tell us about it in the comments!
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